May 11, 2018

Proof once again, Laffer was right.

For real.

Art Laffer postulated back in the Reagan 1980's that reducing tax rates could - and would - lead to an INCREASE in government tax revenue. It was a simple truth that came to be known as the Laffer Curve (explained here).

Once again - proof that the Laffer Curve is real, and that the Congressional Budget Office is clearly populated by Keynsian idiots. Via The Washington Times:

The federal government took in a record tax haul in April en route to its biggest-ever monthly budget surplus, the Congressional Budget Office said, as a surging economy left Americans with more money in their paychecks — and this more to pay to Uncle Sam.

All told the government collected $515 billion and spent $297 billion, for a total monthly surplus of $218 billion. That swamped the previous monthly record of $190 billion, set in 2001.

CBO analysts were surprised by the surplus, which was some $40 billion more than they’d guessed at less than a month ago.

This is not the first time this truth has been demonstrated. It happened under president Kennedy and president Reagan and president Bush. It's happening again under president Trump. It makes one thing perfectly clear - when taxes are too high the economy suffers and when the economy suffers, tax revenue suffers.